Equal pay demands are the “most significant” financial issue facing cash-strapped councils, according to the local authority’s deputy leader.
Chief of Staff Simon Letts said Southampton City Council was engaged in “complex legal negotiations” with various parties.
The council’s extraordinary financial support of up to £121.6 million from the Government this financial year included the ability to borrow up to £52 million to cover potential equal pay liability.
The situation was previously described as an “unintended consequence” of various labor practices that have been in place across the authority over the years.
Cllr Letts, Labour’s deputy council leader and cabinet member for financial and corporate services, was asked if she could provide an update at the Overview and Scrutiny Management Committee meeting on Thursday 24 October.
He said a briefing for ministers and directors on the “complex” issue was planned in the coming weeks.
“When we are engaged in complex legal negotiations with various parties, I do not think it is appropriate to share them publicly,” Letts said.
“I would be happy to come back another time and take questions in front of the camera.
“I would say that this is the most important issue facing the authorities at the moment in terms of finances, and it is precisely that uncertainty that makes it difficult for them and for me to work together in a political sense.
“We’re hoping to have some sort of resolution by the budget meeting in February, and hopefully by then.”
Committee member and Shirley Labor ward councilor Alice Croker said the deputy leader’s comments about the seriousness of the situation “speak volumes”.
Letts said the £52 million was a “best guess” at the time of applying for exceptional financial support and formal approval was still required from the Government.
He said the council was hoping to “significantly” reduce the numbers required as part of the negotiations, but added that it was “complex”.
